Skip to main content

tv   Mad Money  NBC  April 6, 2012 3:00am-4:00am EDT

3:00 am
friday. >> you know what that means. -- captions by vitac -- i'm jim cramer and welcome to my world. >> you need to get in the game! >> he's going out of business and he's nuts! they're nuts! they know nothing! >> i always like to say there's a bull market somewhere. >> "mad money," you can't afford to miss it. >> hey, i'm jim cramer. others want to make friends, i want to save you a little money. my job is to teach, coach, entertain. the market's best first quarter in ages came to an end today. the dow went out with a bang. apple down.
3:01 am
at the end of an ugly week, the worst week of the year, it felt like europe was in the driver's seat, averages getting kicked down to the curb again, the dow off 15 points, s&p giving up .6%, nasdaq bounced .4%. i need you to take a deep breath and remember, when it comes to the global economy, the united states is still driving the car. sure, there'll be days when we trade off europe, but this isn't 2011 anymore, people. and with earnings season beginning next week, i bet it will happen sooner rather than later. what's the game plan? before we get to earnings, monday starts with the digesting of tomorrow's payroll employment data. okay? the labor department stupidly and i think unreasonably issues this report tomorrow blissfully ignorant that the stock market is closed -- hey, come on, it's a regular working day for a lot of people. i care about the market and you and the individual investor and how you won't be able to have the information and people will be trading all over in the future. it's an unfair thing. it's just unfair. so the impact will be on monday's trading. i think the numbers won't matter that much because i think it's going to be in line. which means we will then default, what we always do in the second week of april, we focus on quarterly earnings reports. super value and alcoa kicked things off on tuesday.
3:02 am
i think it's tragic that earnings period has to start out with these two companies. a poorly run supermarket chain and an aluminum company that sells into an irrational market. super value, which hit a 52-week low today, is an overleveraged serial performer with a hefty 6.7% yield. this is one of the dividends that management will keep telling us they're going to preserve right up until the moment that it is cut. i don't want you anywhere near this stock. alcoa on the other hand, much tougher call. here's a company run by terrific chief executive claus kleinfeld. he's made alcoa's aluminum competitive with many other materials during reign. they make the aluminum case for your ipad, the material for natural gas turbines, aluminum coke bottles with the interesting print on it. we could be selling 15 million cars this year and they need a ton of aluminum. and it's so cheap, it can replace copper as a conductor.
3:03 am
but this is a big but, as we saw today with the cuts in capacity that alcoa announced, including takeouts of jobs in italy and spain, there's way too much aluminum being produced the world over. and a lot of it is made in china. where you're allowed to pollute the heck out of the air and where making this stuff is basically a communist works project. here it is, make more aluminum than you need. that's like the first chapter. the prc puts people to work making 5 million tons too much aluminum. there's the overcapacity, and the 390,000 tons that alcoa took out with this announcement today, that's a drop in the bucket. suffice it to say that alcoa will make a subpar impression for the start of the earnings season and whatever good might come won't happen until the next quarter. don't freak out if tuesday's full of bad news from svu and in the morning and alcoa after the close. wednesday we hear from a little guy, i like to watch these little companies.
3:04 am
east group properties this week. i like to hear what they say in order to make a broader view of things. this one's called titan machinery. if you want to read on the agriculture and construction industries before the big ag companies report, this little company maybe can give you both. they sell and rent equipment. given that titan carries earth-moving equipment and looks a lot like cramer fave united rentals, we could get a sense of what bigger companies like caterpillar might report. this is just a fabulous tell on the future. i want you to pay attention to it. i will do it too. google reports on thursday after the close. we may not like how far flung the google empire has now become with so many moving parts, including the motorola mobility deal to get key patents. i know europe's trying to block that, as well as a non-needle mover, sure did get a lot of publicity, the augmented reality glasses and a reinstated lawsuit against viacom and youtube. what really matters here,
3:05 am
earnings. and on that front, i think google's doing quite well. the stock has gotten inexpensive because it's still got good growth. web search is google's game. and every time you read something negative about yahoo, that means good news for google, they're taking share. and don't forget, google has mobile, social, and cloud. and that's the holy trinity of tech. and i'm sure there'll be confusion around the reported number, i believe google's doing just fine. there is a little too much guess work for me to say buy, buy, buy, but i like it as a tech value play. who would've ever thought that google would be a tech value play? but it is versus its growth rate. friday is bank day with the results from jpmorgan and wells fargo coming that morning. jpmorgan basically told you how it was doing in ceo jamie dimon's just-released letter to shareholders. i took a lot of heat by saying i thought he was whining. but there is a lot of -- anyway, to put it simply, the company's making pretty good money, but
3:06 am
could be doing much better if it were not for all the regulations, many bad mortgages and the rules that require him to play with one arm tied behind his back against foreign companies, as well as rules that require him to keep more capital on the balance sheet than he needs to. my charitable trust owns jpmorgan, and by the way, i bank at jpmorgan, and i wouldn't be surprised if it goes higher. don't take it all that personally, although i know you will. wells fargo will tell us its cross selling and mortgage businesses are stronger and getting stronger and they will not whine. they will just say hey, listen, we'll deal with any environment. i believe wells fargo with less of a tie to europe, meaning like none, will be viewed as the better buy now that europe's on the front-burner courtesy of slow growth and worries about spain. jpmorgan, morgan stanley, and goldman sachs, but not to domestics like wells. beyond earnings, we have some important chinese inflation data over the weekend. i don't know, both the consumer price index and producer price
3:07 am
index come out sunday. the chinese didn't cut rates last week. business was strong. strong enough not to merit it. but i've got to tell you, i believe that if they get inflation under control as represented by these numbers, the tricoms might play their hand and say the rates must come down. we need the people's republic to offset the nastiness in europe, it's a tall order, but better happen soon because we're going to be trapped. then the beige book comes out from the fed. they did that nice beige. isn't that good? i think it might reverse the notion that ben bernanke's not going to keep printing money if we see weakness in the economy beyond what's occurred since the last statement, which caused stocks to get hammered, remember. this is not as important as something from the fed chairman himself, but a key piece to the mosaic of fed thinking. finally on friday, we get industrial data from italy, all right? this is industrial -- picture for industrial data. this is like draw something. omg pop, someone did that, it's very good.
3:08 am
and it took me like i could figure it out like -- play the game, it's really cool. if we get a weak italian industrial production number, we've got to risk having italy back on the red hot griddle. i don't fear italy as much as spain. italy is taking serious growth moves. i'm certain that i'll be the only one that doesn't fear it and people will be saying, well, that industrial data number, italy in more trouble than we thought. here's the bottom line. everybody's making a fuss about tomorrow's unemployment report from the labor department. but when the market digests it monday and it should have been out yesterday. i bet the numbers will be in line and will be close to a non-event. after that, we default to earnings season. remember that super value and alcoa, the two companies that kick things off are not representative of what's going to come after. super value, perpetual loser. alcoa, many fine points that are still being crushed like a tin can by china's relentless overproduction of aluminum. as long as you don't take your cue from these two companies and be attuned to the better reports later in the week, i think you will do as my phillies did
3:09 am
opening day. meaning, you'll do just fine. let's go to sam in ohio. sam? >> caller: jim, thanks for taking my call. >> my pleasure. >> caller: a lot of success this year and i've done very well trading in. with that said, how will passing of the jobs act today impact trading ipos from this point forward? >> much ado about nothing. it is very difficult -- a lot of companies don't want to come public. i think it's a good thing that they're going to be able to do it. i'm sure there'll be a lot of what herb greenberg said, increased chicanery. debra said the same thing at the "closing bell." i'm not as concerned. i think it's good, too much regulation for small cap companies that want to come public. let's go to dwayne in kansas. dwayne? >> caller: hey, big boo-yah. >> boo-yah back at you. sorry about the loss, but that's
3:10 am
all right. good to be in. >> anyway, love you -- love that. >> thank you. >> caller: you called that right out. i'm looking at consolation brands now. and i know they got beaten up, is there a buying point? >> no, i heard the ceo, he was on "closing bell." i was surprised he came on given how bad the quarter was and the guidance was. goldman sachs recommended it earlier this week and took beam off the list. and everyone figured it must be really good or goldman wouldn't recommend it. that was wrong. i'll pay that guy at goldman another $4 million or $5 million. i think tomorrow's employment report will be in line, all right. and another big impact, shame on the labor department for putting it out on good friday. and next earnings season, we're not going to pay attention to these, we're going to pay attention to the rest of these. particularly that one which i think is going to be very good. "mad money" will be right back.
3:11 am
coming up -- shale's away? with nat gas prices near ten-year lows, u.s. drillers are feeling the pinch. can rich oil plays give these wildcatters a stronger cash flow? cramer's exclusive with devon energy's ceo is next. and later, bad apple? its products have dominated the competition. while the stock has continued to make new all-time highs, now apple sits atop the tape as one of the most valuable companies in the world. what effect is this having on the market? cramer slices into the issue, all coming up on "mad money." miss out on some "mad money"? get your text alert today. text "mm" to 26221 to get cramer right on your phone. for more info visit or give us a
3:12 am
call at 1-800-743-cnbc.
3:13 am
3:14 am
never let a garden variety selloff like we've had this week blind you to opportunity. whenever we get a nasty pullback like the one we had yesterday, lots of good news tends to slip through the cracks because people were too panicked to notice anything positive. and that can create some incredible bargains. take devon energy, dvn, big independent oil and gas company, i like it so much my charitable trust owns it, you can follow along at devon is a classic example of
3:15 am
how companies can and do change their stripes. used to be a global exploration and production player with offshore assets, but starting in 2010, the company sold off its international and offshore business, turning itself into a north american oil and gas play. now the company is focusing like a laser on finding new oil and higher priced nat gas liquids rather than drilling for cheap, dry, natural gas. for 2012, 90% of the capital expenditure budget is devoted to oil and oil liquids. yesterday devon held what i thought was a very bullish analyst meeting, but the news was largely ignored because of the selloff and the stock barely budged. today it went down even though the price of oil rebounded about $1.80. they talked about their acreage in the permian basin, barnett shale, and we talked about that one, the one in canada, and a new one called the kline shale in texas. previously undisclosed play where they plan to drill 15 wells this year. devon is getting more aggressive
3:16 am
with the company upping the annual expenditure by $6.3 billion. devon plans to grow oil production by 22% to 24%. that's a growth stock, everybody. increased the output by 11% to 13%. a minor decline in natural gas, it's very impressive. and by the way, we don't care about natural gas at this point. the stock has lagged the rest of the group because investors are skeptical about the company's resources. and they've underestimated the value of devon's new oil projects to the point where the stock sits at a 22% discount to its net asset value and is probably the cheapest of the majors on interest taxes and depreciation. after yesterday's analyst day, you know, i bet it's ready to move higher. i am not kidding. don't take it from me. let's check in with john richelles, president and ceo of devon energy, to find out more about what's ahead for his company. welcome back to "mad money." >> it's nice to be with you again, jim, how are you? >> i'm real good.
3:17 am
here's the thing, page 23 of your excellent analyst day i'm going through. i'm going to start with it, even though you could argue we should start with the big budget increase because it says misconceptions about devon. and i want to explain to people how the disconnect is wrong between your valuation what the stock goes for. that -- true or false? natural gas focused with minimal liquids exposure. >> that's not the case at all, jim. and in fact, we've always had a strategy of being a balanced producer between oil and liquids on one hand and natural gas on the other. and in 2000 -- currently, we're producing about 35% or so in the form of oil and liquids. and that's a lot. i mean, we've got a big production base. we're talking about 250,000 barrels a day of oil and liquids of which 150,000 is crude oil. so we haven't been really a natural gas player even though we have a large natural gas inventory.
3:18 am
this year as you've already pointed out, we're spending zero on drilling any dry gas wells and only growing our oil and liquids. >> yeah, there's a new one. another one people always talk about, key assets are maturing. >> that's because we've got assets like the barnett shale which a lot of people got in, you know, a lot of other companies got in kind of late, drilled up their inventory and have left for us because we got in so early. we have just tons of running room still in the barnett shale. we've got probably 2,500 risked drilling locations in just the liquids-rich part of it. let alone the dry gas. so we're going to be there for years and it's continuing to grow the cana field outside oklahoma city that we've talked about before is continuing to grow. so our development assets have a lot of growth in them. and what we're doing now is adding on a lot of new emerging exploration opportunities in the oil side. >> all right. last one of the misconceptions. they've got $7.1 billion in cash burning a hole in their pocket and they're going to spend it on some acquisition.
3:19 am
>> that's probably the most frustrating one for me. we've tried to communicate our strategy. our strategy is to build growth organically. we do a lot better when we can create things wholesale rather than going out and buying something retail. and we've got the capability and the inventory to grow internally and to allocate that cash we have. which by the way gives us a huge competitive advantage. we've got a big asset base and we have the cash to develop it. and that's a better place for us to allocate our money. >> i've got half the guys come on here and they don't have any money and they're drilling like mad and they keep their funding gap. that's what worries me, not the fact you have $7 billion in cash. how about this one? you would not reveal last time the field because you were still -- you were still trying to get all the leases in. this cline field, 500,000 acres, a lot of oil in that one? >> yeah, there's a lot of oil, jim. we're really excited about it. this is in the eastern flank of
3:20 am
the permian basin. the midland basin. that's a very oil-rich area multi-horizon and we're really focused there on this cline shale. we have a lot of optimism about it and a lot of confidence it's going to work out well. there are also a number of other horizons that have oil potential, as well. so it's an area that we're going to be aggressive in in the next few years and we're going to move ahead and develop fairly quickly. >> all right, one of the things i know is going to keep you back. people do know there is a lot of nat gas. is nat gas going to take out $2? >> i think we're going to see one hand natural gas this summer at some point in time because of where we are on the -- at least on the spot market. just because of where we are in the storage picture right now. we probably in north america have a tcf or something like that over our normal storage and in the summer it's going to get filled up pretty quickly.
3:21 am
but we see activities slowing down in a lot of areas. and it should be slowing down in a lot of areas where people were drilling dry gas. and so we have a bit more of an optimistic feeling as we get into 2013 and beyond. >> and brent at $120, surprising, could it go to $140? the way boone pickens is saying? >> well, it sure could. in the past what we've seen -- and fundamentals of oil are so much different and all the geopolitical issues around the world keep the price of it high, as well. but as we've seen in the past as we get much past $120 a barrel, you start to have some demand erosion, as well. i don't know whether that's sustainable for any period of time. >> now, we've had this decline even since the last time we saw you. further decline in natural gas, and yet i still don't see any of the big chains saying we're going to put natural gas stations in our -- we're going to put natural gas pumps in our stations. instead, i hear that shell's
3:22 am
thinking about building a $10 billion refinery to turn natural gas into diesel. why do they need to do that if we have west port innovations and cummins making natural gas trucks? >> well, that's -- that's a great question. and i think we are going to start to see a lot more natural gas used in the future in transportation. i think it will really help. we've got some car manufacturers that the vehicle manufacturers now putting out pickup trucks that come ready for -- ready to use natural gas rather than being after market conversions, and you've got companies like west port and others that are working hard in that area. where we're starting to see it quite a bit is in fleet vehicles, buses, and that type of thing. it's a little bit more challenging for long haul and long distance travel just because it requires more work on the infrastructure, the fuel delivery system. >> all right. one last line of inquiry that matters to me because people don't give you credit for it. you do have a gigantic canadian operation, don't you? >> yeah, we have. it's about a third -- about 30% of our company.
3:23 am
>> and people say, hold on, there's no keystone pipeline, that's not true either, right? >> it's not. there are other work -- there are other pipelines available and other companies are developing pipelines to get it out. and with the president's position recently and not having approved the northern portion of the keystone pipeline, there's tremendous pressure in canada now to move that oil to the west coast and send it to asia. so that oil is going to be produced and it's going somewhere. we hope it's going to come here to the u.s. but if it doesn't and if we don't get that pipeline approved, it may well go to the west coast. >> and if we don't start using natural gas? cheniere energy is going to send our natural gas overseas too, isn't it? >> well, there's certainly some movement. as you know, to build lng terminals to export natural gas, we're seeing that in the gulf coast area and we're seeing in the west coast of canada. >> so the world's pretty up -- the united states is upside down when it comes to nonenergy
3:24 am
policy. >> we have a terrific opportunity to not only take advantage of a huge natural gas resource, but what is also becoming evident as a huge oil resource, we need to get after it. >> it's so -- i've gotten very cynical about it, john. i'm not even skeptical. i'm downright cynical. john richels, great analyst meeting, fantastic job. great to see you, sir. >> great to see you too, jim. thanks for having me on. >> all right, john richels runs a fabulous, fabulous oil and gas company. it is shifting quickly and that has made it so it is the cheapest in the group. john richels, president and ceo of devon energy. stick with devon and stick with cramer. coming up -- bad apple? its products have dominated the competition. while the stock has continued to make new all-time highs.
3:25 am
now apple sits atop the tape as one of the most valuable companies in the world. but what affect is this having on the market? cramer slices into the issue. o? tired. groggy. can't seem to get anything done. it makes for one, lousy day. but when you're alert and energetic... that's different. you're more with it, sharper, getting stuff done. this is why people choose 5-hour energy over 9-million times a week. it gives them the alert, energetic feeling they need to get stuff done. 5-hour energy...when you gotta get stuff done. four delizioso subs, featuring the molto bono chicken parmesan.
3:26 am
juicy, oven crisp chicken covered in marinara sauce & bubbly cheese on freshly baked italian herb & cheese bread. subway. eat fresh. with resolve deep clean powder. the moist powder removes three times more dirt than vacuuming alone while neutralizing odors for a clean you can see, smell and really enjoy. don't just vacuum clean. resolve clean.
3:27 am
do the averages tell the real story of this market? or do we have a tail wagging the dog situation where the
3:28 am
benchmarks are skewed by the tremendous outperformance of a single huge stock? is it possible that an individual stock could have too much influence on the standard & poor's 500? the index that's the most widely used benchmark for the overall market? in other words, go on, has apple become too powerful? i've seen and heard a lot of chatter lately. especially twitter @jimcramer, people are really bringing this up. they are worried that the fantastic rally at apple has distorted the performance of the tech-heavy nasdaq and even the much broader s&p 500 stock index an inconceivable proposition for this or any individual stock not that long ago. so is this something you should be worried about? like so many are on twitter? has apple's huge run made the market look better than it really is? i think we need to approach this issue empirically. i approached tim collins to figure out exactly how much influence apple really has on the entire index that is the s&p 500.
3:29 am
and i've got to tell you, the results from tim's analysis were striking. before i show you the charts, though, let me explain a little bit about how an index like the s&p works. the s&p 500 is what's known as a capitalization weighted index. which means the components are weighted according to the size of their market cap and that's how an individual stock like apple can make up over 4% of the index, even though there's 499 other stocks there. since apple's the biggest company, it gets the most weight followed by exxon, ibm, for instance. simply by virtue of its size, apple has more influence over the performance to s&p than any other stock, logical, right? in fact, it accounts for about 20 times as much as the average stock in the index. when you combine that outsize weighting with the fact that apple's up a staggering 56% year-to-date, you can see why people might be concerned the strength in this one stock may be covering up underlying weakness in the rest of the market. that's what the pundits are telling me. and it's true that apple's had a huge impact.
3:30 am
check this chart out. it shows year-to-date performance of apple, the ten largest stocks in the s&p as a separate one and then the index itself and how the s&p would've done without apple. so you've got apple, top ten and then i'm sorry you've got apple up here, the top ten, and then you've got the index and then the index without apple. you see the bottom one, the black one, that's without apple. i think that's frankly pretty stunning. you can see a bunch of things here. when you remove apple from the equation, it makes a significant difference. look at that. without the lift provided by apple, the s&p 500 would be meaningfully lower, although not usually lower, it wouldn't be like down. and second, not only apple but the ten biggest companies in the index have dramatically outperformed the s&p as a whole. when you consider these components pick up more than 20% of the index, that's a big deal. that's why to really measure apple's impact, collins decided to break down what's happening
3:31 am
within the ten largest companies of the s&p. take a look at this graph, it shows you the performance of each stock in the top ten. even with this group of mega cap names, apple soars above the rest. microsoft makes a distant second, up a little more than 20%, ibm comes in third, 12%, but the other seven stocks are much less impressive, with some of them hovering around the 1% level. and chevron actually in negative territory. isn't that funny with oil at $120 and change? chevron's off 2% for the year. in the first chart, it looked like the ten largest components left the broader index in the dust. however, upon closer inspection, it appears the outperformance was caused almost exclusively by apple. consider this next graph of the nine largest holdings of the index. excluding apple versus the s&p 500, this one's really telling. let's see the excluding one.
3:32 am
as you can see, the s&p is up 11.2% and made that in red. it was easy to see. within this group of mega cap stocks, only microsoft and ibm actually outperformed the index, okay? and ibm only did so slightly. all seven of the other heavily weighted names lagged the broader index. in short, you remove apple and the performance of the other nine trails the overall s&p 500. pretty interesting. that gives you a real good sense of apple's power. this stock is so big and has so much momentum that it not only canceled out the underperformance of the nine next largest companies, apple made it so the top ten dramatically beat the s&p as a whole. based on collins work, there's no doubt apple has played an enormous role in the spectacular rally since the beginning of the year. we've seen what it's like when a single sector takes over the market and that's what happened in 2008 and 2009 when a handful of bank stocks brought the averages to their knees. for a bull market to be
3:33 am
sustainable, it needs to be broad-based. however, i could argue that's exactly the market we have. apple's monster run may be tipping the scales further into positive territory, but even without apple, the s&p 500 is still in real darn good shape. for years, the standard & poor's has maintained an alternate version of the s&p 500 where every stock gets weighted equally. and the equal weight at s&p 500 is still up 9.2% for the year, not as good as the gain in the real s&p, but come on, if you just weighted the stocks equally, s&p's up a lot. how about this? consider the dow jones average. only 30 stocks and usually being less representative of the market than the broader s&p 500, even after the recent pullback, the dow is still up 7% for the year and doesn't have apple at all as a component. that's pretty good too. bottom line, based on the terrific work from tim collins,
3:34 am
we know that apple exercises a tremendous amount of influence and performance of the s&p 500, but is it too powerful? i don't think so. is the fabulous bull market this year really nothing more than an apple rally in disguise? no way. sure, apple's run makes the s&p look better than it would without apple. but apple's the largest company in the world. it's a stock that tons of people own. the truth is the strength in apple should count for a lot. if we reach a point where apple's the only thing propping up the entire s&p 500, then it's a different story. but until then, don't let one stock's strength make you doubt the broader market which is acting pretty darn good even considering this selloff this week, the worst week of the year so far. ruth in washington, d.c., ruth? >> caller: hi, jim, how are you? >> real good, ruth. >> caller: it's a beautiful day for baseball and it's opening day here and why aren't you at the ballpark?
3:35 am
>> i'm not at the ballpark because it's in pittsburgh. >> caller: i know, i'm not at the ballpark either because they're playing the cubbies. >> there's this thing called which i never use at work, although i did have to call, you know, george, he's doing their executive producer today to see if i couldn't get i.t. down there to get rid of the spanish language version -- never mind, go ahead. >> caller: well, i'm watching it and we're tied 1-1 in the eighth inning. anyway, and i know how much you love baseball. >> i do! i do! i just love it! i admit it! i love baseball. i love baseball! >> i do too. i love it. my stock is verifone, p.a.y. and i'd like to know what benefit or increase you see. i see it as huge. >> i have to tell you, i agree with you incredibly both about baseball, ruth, and about p.a.y. that goldman sachs report coming out today recommending it made
3:36 am
me want to jump up and down to say everyone should be in p.a.y. precisely for the reasons ruth said, except ruth's not paid the $2 million that goldman sachs pays you to make that statement. the strength in big apple counts a lot. but the rest of the market's pretty darn strong too. don't write off the market by saying it's all apple. because you know what? it's all apple and a bunch of other stocks too. stay with cramer. coming up, can you handle the heat? cramer gets you fired up for a searing hot lightning round. tweeting the technicals. tweet week continues as cramer goes off the charts. have a question, tweet it to @jimcramer #madtweets and it might be answered on the air.
3:37 am
3:38 am
3:39 am
it is time -- it's time for the "lightning round" on cramer's "mad money." rapid-fire calls, say the name of the stock, i tell you whether to buy or sell. play until this sound -- [ buzzer ] and then the "lightning round" is over. are you ready skee-daddy? i'm going to start with terry in pennsylvania. >> caller: hi, jim, thanks for everything. my stock is ryn. >> i like them but i'm going to see you with plum creek timber, which i like even more.
3:40 am
john in florida? >> caller: hi, jim, it's john in dunedin, florida. >> oh, man, i'm not done eating. go ahead. >> caller: i've spoken to you before and my opinion you're the go-to guy for an honest opinion and advice. and i want to say your two girls kate and heather, they're an asset how they treat your listeners. >> they are fabulous and i do love them. let's get to work. >> caller: anyway, callaway golf, ely. >> i know people saying golf's coming back, i'm a sell, sell, sell. buy dks, that's better. richard in hawaii. richard? >> caller: hello, sir, and aloha from honolulu. i have a question about cheniere energy partners, and they're working on a natural gas export facility in louisiana,
3:41 am
blackstone put $2 billion in the company in february, and i was wondering what you think the long-term prospects of that are. >> you know we have had him on the show. i like that guy a lot, man. we made a bunch of money in the stock. that means we've got to wait for it to cool down a little. it drops a couple bucks, then bingo! eric in arizona. eric? >> caller: hey, jim. how you doing? >> real good, eric. how about you? >> caller: good. slb, schlumberger, i own the stock, seen it in the 90s, but last august after poor earnings, the stock has never recovered. is this a long-term stock for me? or should i look at selling in the high 80s low 90s? >> short-term, i don't think it's going to do anything, there's a lot of chartists who say it's going to drop. schlumberger is the best company in the industry long-term. and i want to own the stock right into the weakness. now we're going to austin in florida. austin? >> caller: big boo-yah from austin. dr. phillips, florida.
3:42 am
>> i'm not familiar with that. >> caller: the question is on pandora, p, we bought it at $14 and wondered what you think we should do with it? >> sell, sell, sell, sell, sell, sell! >> you've got to have a business model, and i don't see pandora really having a business model. it's an interesting product, but sometimes a product does not make a stock. let's go to hershey in new york. >> i wanted to ask you, what's your take on broad vision? >> i don't know. you know, i don't like that company at all. here's what i would do. hershey, i would change my name to broadvision and call me and ask me about hershey and i would say two thumbs up. couldn't resist. and that, ladies and gentlemen is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. [ jim koch ] there is a rhythm of the seasons, so we've developed styles of beer to accompany that.
3:43 am
we brew octoberfest, winter lager, alpine spring and right now, there's summer ale. [ bob cannon ] samuel adams summer ale is a flavorful wheat beer. it has a very nice spice note. [ jim koch ] it has a little lemon zest and a historic brewing spice called grains of paradise. it's citrusy. -lemony. -flavorful. -refreshing. -wow. [ man ] sam adams summer ale, there's just something about it. it's like, totally reminds you of summer, you know? activating protection, bear! the more you move, the more it works! [ roars ] [ screaming ] new long lasting degree with motionsense help me! keep running! see? he's taking his vitamins. one a day vitacraves plus omega-3 dha is a complete multivitamin for adults. plus an excellent source of omega-3 dha in a great tasting gummy. one a day, gummies for grown-ups.
3:44 am
3:45 am
3:46 am
i want to take a few minutes to respond to your tweets, but first, we got some housekeeping to take care of. back on march 21st, howard from arizona wanted to know my thoughts on ticker imos. i needed to look at the exposure to apple given all the stocks related to apple have ripped to the upside. it's a leading provider in test services with exposure to smartphones and tablets, cloud computing centers, infotainment and gaming. all areas that are hot right now. while it benefits from apple's success, this company has other end markets and high customer concentrations with novatech and
3:47 am
promos, neither company i want to be levered to, in addition, shares are up 2.1% year-to-date, despite losing 13% in the last five days. while this is part of the ipad teardown trade, i think it's time to take profits here. i should have had this one last year. on march 22nd we heard from nathan in my home state of pennsylvania last thursday asked for input on ticker symbol invn. these techies are market pioneer and global leaders in intelligent motion processing solutions that enable a motion-based user interface with six axis and nine axis motion-tracking technologies for consumer electronics. power items like nintendos wii, remember the one that lets you play golf at home? does jim nantz come to your house, talk about the -- all right, the demand for motion control is spreading deeper and products are getting more sophisticated. today mobile devices like
3:48 am
smartphones and tablets are the second major market to begin adopting motion interspace. it's up 60% year-to-date. also 27 times earnings, even though it's got a 27% long-term growth rate. i think a lot of good news is priced in. you know what? you're going to get a better chance to buy this name during a market pullback. be patient. all right, now some tweets. the punisher 801 -- i'm punisher 800. is roundies still a buy? somebody else on twitter was saying they went to one of the stores and it was dirty. there's more to it. maybe your store's an aberration, that's called anecdotal evidence, we don't use that on "mad money." here's one from top tim lattes? is the nokia lumina a needle mover? it sure sounded like a needle
3:49 am
mover, but it is a late entry into the cell phone business, and i don't think nokia is going to be able to crack anything new there. no, i'm not a buyer of nokia. some guy may upgrade nokia on monday and probably you should sell it. taoofpatrick, jim, i am your age. got to get it together. you know, twitter, they have just a few characters, people use pidgin english. how long do you work out of the morning? how many days a week? i work out hour and a half every day, my trainer jim comes to my house at 4:30 in the morning and beats the heck out of me. it's one of the grimmest things that happens and i love it because that's the kind of guy i am. i also do a lot of stretching. there's my whole routine. you do not want my routine. if i could sleep past 2:47 a.m. it would be the greatest thing that's ever happened. it won't happen, why? because my sister can't sleep past 2:47 a.m. i can even change the clock and i still get up at 2:47.
3:50 am
come on, man, i'm just about -- go to @jimcramer tonight. all i'm going to do is tweet. all right? that is it. i'm just going to tweet and then you can get some answers. "mad money's" back after the break. i used to not travel very much, but then i discovered hotwire. now, i use all my vacation days. i can afford to visit my folks for the holidays. and reconnect with my girlfriends in vegas. because i get ridiculously low prices on all my trips. you see, when hotels have unsold rooms, they use hotwire to fill them, so i get 4-star hotels for up to half off. now i can afford a romantic trip to new orleans. hi honey! ♪ h-o-t-w-i-r-e... ♪ ♪ oh pepperoni ♪ how much i love yah see the game last night? course i did! [ male announcer ] try the meatball pepperoni melt today. subway. eat fresh.
3:51 am
a, the appearance. amber. [ jim ] b, balance. sam adams has malt sweetness, hoppy bitterness. [ jim ] c, complexity. pine notes, grapefruit notes. only believe your own pallet. go taste them. it's like totally crunch-erific! what they mean is, it's french's french fried onions in my green bean casserole. french's french fried onions. available in the french's stay-fresh can. education without 'u'. you also can't spell it without an education. my parents taught me that. both high school teachers for more than 30 years. ya'll go thank all the teachers out there the more you know.
3:52 am
lots of people get mystified when i say a company is a poor executer of its operations. i've been critical of so many
3:53 am
management teams on "mad money." i blasted sandisk management for being wildly inconsistent. i've been overly critical of the avon company for not being able to deliver to shareholders. and despite the rise in bank of america stock, i'm perturbed at the execution of that bank's plan to return to health after the hideous countrywide accusation, and the horrid lending standards of both the original bank of america and then the successor that includes countrywide. the pushback i have been getting on these judgments. it isn't critical about the managements i've selected to be harsh on, most people agree with my choices. it's much more of a sense and this is @jimcramer on twitter. what does it mean to execute, jim? who is executing well? tell us what good execution is. okay. so here we go. good execution means having a coherent strategy and then prosecuting that strategy with effective tactics that bring out value and reward shareholders. so who's performing both tasks perfectly?
3:54 am
how about chuck bunch, a frequent guest of "mad money" who is ceo of ppg and that's the old pittsburgh plate glass. there was a time at my hedge fund where every tick down in housing or autos, i would buy puts on this company. i knew that the glass in the cars would be backed up and over inventoried. the paint division alone could break down earnings. when bunch came in, he looked at the businesses and decided strategically that he would steer ppg away from commodity kinds of work. commodity business with low price to earnings multiples and toward proprietary businesses that the stock market values much more because they have higher margins and the street loves high margins. he picked the industries that have pure growth paths, such as high-performance plastics for aerospace as well as new kinds of glasses for optical wear. i know i wear them. most important, he expanded overseas as the parochial pittsburgh plate glass became the international ppg. he embraced europe and asia to
3:55 am
hit growth markets as the u.s. stagnated. these are terrific strategies. a well thought out strategy, however, doesn't get you far if you don't execute on the tactics that fulfill those strategies. bunch has excelled in the tactical too. coming up with superior automotive coatings. the best automakers in asia have embraced ppg's products over many others and those car makers are the gold standard in the business. at the same time, though, bunch has been tough as nails. when europe turned down, boom, what did he do? he trimmed and cut and the 2,000 layoffs he announced today despite the profit explosion that allowed him to pre-announce better than expected earnings were largely contained to slowing european markets. finally bunch is one of the most shareholder friendly execs out there. during the downturn, doubters thought this was the same old ppg and perhaps it would even have to cut its dividend. instead bunch steered the company toward dividend increases and at one point we
3:56 am
had a real accidental high yielder on our hands because people didn't believe. i believe. how good a job has he done? i think if you google business execution, bunch should be very first in the queue. no better than bunch, which is why ppg hit a 52-week high today when so many other chemical companies wallow at much lower levels. stick with cramer. [ water ] hey, it's me water. guys, check this out. [ crowd ] yay! aww! yay! aww! [ water ] see?
3:57 am
and it removes 99% of lead and microbial cysts. [ crowd cheering ] and the crowd goes wild. [ imitates crowd cheering ] i'm here to unleash my inner cowboy. instead i got heartburn. [ horse neighs ] hold up partner. prilosec isn't for fast relief. try alka-seltzer. it kills heartburn fast. yeehaw!
3:58 am
3:59 am
one of the most refreshing and terrific things that happened today was all the apparel companies were up. you know i like pvh, i like vf corp. what does this say? it says that they did not -- the retailers did not borrow from april and may which is what a lot of people were saying and they wanted to sell the retailers. also, what did i tell you about bed, bath, and beyond? it is not an amazon showroom the way so many had said and that's why it was one of the great short squeezes ever. stick with me when it comes to bbby. there's always a bull market


info Stream Only

Uploaded by TV Archive on